How Is the Performance for Period Recorded According to GAAP

question 22

Multiple Choice

How is the performance for period recorded according to GAAP business?

• A)As a "fair" presentation of results for the period.
• B)As a capitalized as asset on balance sheet,not as an expense on income statement.
• C)As a proper matching of revenues and costs for the period in an income statement.
• D)All of the above.
• E)None of the above.

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Definitions:

Diminishing Marginal Utility

The decrease in satisfaction or usefulness as additional units of a product are consumed.

Staples

Basic or essential food items or goods that are widely used and regularly consumed by households.

Paper Clips

Tiny segments of twisted wire or plastic designed to keep pages of paper attached.

Marginal Utility

The additional satisfaction or utility a consumer receives from consuming one additional unit of a good or service.